Does the Sonesta Simply Suites agreement require franchisees to obtain similar covenants from officers?

According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, franchisees are required to obtain non-compete covenants from specific personnel. This includes officers, directors, managers, and other employees who attend Sonesta Simply Suites' training programs or have access to confidential information.

The purpose of these covenants is to prevent these individuals from engaging in activities that could harm the Sonesta Simply Suites brand, such as working for a competing business or using the franchise system's confidential information in another venture. The agreement specifies that Sonesta Simply Suites has the right to regulate the form of the agreement used for these covenants and to be a third-party beneficiary with independent enforcement rights.

This requirement ensures that key personnel within the franchise operation are legally bound to protect Sonesta Simply Suites' interests. It also allows Sonesta Simply Suites to directly enforce these agreements, providing an additional layer of protection for its brand and confidential information. This is a fairly standard practice in franchising, as franchisors seek to protect their business model and trade secrets.